Slope of Hope Blog Posts

Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.

StealthFlation Defined………………by BDI

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Dollars funnel.

StealthFlation:

An intractable economic condition that inevitably arises as unlimited units of currency compulsively pursue nonproductive wealth assets in a grossly over-leveraged economy which has been artificially reflated in a desperate and misguided attempt by monetary authorities to synthetically engineer growth via extreme monetization.   Preventing the real economy on the ground from seeking the healthy normalization and natural balance of free market forces necessary for genuine productive economic growth. (more…)

Buy Signals Triggered

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The long setup I was looking at on Friday morning triggered on Friday so the daily lower band ride should be over and I’m looking at upside targets. The main target I’m watching is not an SPX level but the 70 level on the daily RSI 5. The RSI 5 closed on Friday at 47, and I’d expect to see a rally of at absolute minimum to the 50 DMA to make this target. Of the last seventeen of these from the start of 2007, only three retested the lows before making my RSI 5 target at 70, and two failed in the 60 area before going on to new lows. This is a strong buy signal. SPX daily vs RSI 5 & NYMO:

140811 SPX Daily vs NYMO and RSI 5

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Leaning Long

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SPX broke back above the daily lower band yesterday and delivered a 27 point bounce from the lows, before giving much of that back overnight. There are arguments both ways for direction today. The arguments for the short side are that the 60min RSI 14 reached 50, which is a natural reversal level and the obvious level to reverse at to deliver positive RSI divergence at a retest of the lows. The falling channel on RUT also argues for a test of the lows next. I have two bull/bear levels that I’ll be watching today carefully in regular trading hours (RTH) and those are the 1925 ES level (1930 SPX area) at the ES 50 hour MA, and the SPX daily lower band at 1934. (more…)